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VANCOUVER, B.C., CANADA – BC Hydro today issued the Vancouver Island Call for Tenders (VI CFT), inviting private sector developers to submit proposals for new generation projects to be located on Vancouver Island.

BC Hydro’s target for the VI CFT is to acquire 150 to 300 megawatts (MW), in aggregate, of new dependable capacity on Vancouver Island. Individual projects must employ proven technology, be at least 25 MW in size and be in commercial operation by May 2007.

"The Vancouver Island Call for Tenders is a competitive process that has been designed to determine the most cost-effective option for providing dependable capacity to meet the supply shortfall anticipated on the Island," explained Bev Van Ruyven, Senior Vice-President, Distribution. The CFT will be accompanied by an initial report from the Independent Reviewer regarding the fairness of the CFT process.

Private sector developers can tender new generation projects to be built on the Island. Alternatively, developers can elect to acquire the assets associated with VIGP - the planned 265 MW gas-fired generation project at Duke Point, near Nanaimo – and tender VIGP as originally designed, or as a modified project on the same site.

Bidders for natural gas fired projects will have the option of selecting a tolling arrangement, whereby BC Hydro will assume the natural gas transportation and commodity risk, or a non-tolling structure, whereby the bidder is responsible for the purchase and transportation of fuel using either the Georgia Straight Crossing (GSX) pipeline or the Terasen Gas pipeline system. The GSX project is a joint venture between BC Hydro and the Williams Gas Pipeline Company.

The CFT will comprise a pre-qualification phase and a tender phase. Bidders and their projects must meet mandatory criteria in the pre-qualification phase and must a pass development risk assessment in the tender phase. Successful projects will then be selected using a simplified evaluation methodology. Long-term (10 to 25 year) electricity purchase agreements will be awarded to the most cost-effective projects when the CFT process is concluded in summer 2004.

"We’re expecting a good response," said Van Ruyven. "Over the last few weeks, a number of prospective bidders have already indicated their interest in participating."

Private sector developers interested in participating in the VI CFT must register their intent by November 14. The Call for Tenders document, along with other related materials, is now posted  here.

Contact:

BC Hydro Media Relations

Media Relations manager

Phone: 604 623-4022

BC Hydro releases VI CFT

• BC Hydro has long identified the need for new dependable capacity to meet its long-term electrical load on Vancouver Island.
• This dependable capacity must be in place by 2007 to offset the fact that the aging submarine transmission cable system – the high voltage direct current (HVDC) – will no longer be able to reliably supply Vancouver Island from the mainland of the province.
• In response, BC Hydro pursued two initiatives:
• The Vancouver Island Generation Project (VIGP) – a 265 MW combined cycle gas turbine generation facility proposed by Vancouver Island Energy Corporation (VIEP), a wholly owned subsidiary of BC Hydro. VIGP was to reach commercial operation by November 1, 2006.

• Georgia Strait Crossing – a natural gas pipeline jointly sponsored by BC Hydro and Williams Gas Pipeline Company to increase gas transportation capacity to Vancouver Island, with a scheduled in-service date that would support service to VIGP.

• Public hearings on VIGP took place during the summer of 2003. On September 8, 2003, the BC Utilities Commission (BCUC) denied VIEP a Certificate of Public Convenience and Necessity to build VIGP, and encouraged BC Hydro to proceed with a call for tenders to determine the most cost-effective option for new dependable capacity on Vancouver Island.

• Through the Vancouver Island Call for Tenders (VI CFT), BC Hydro is seeking proposals for new dependable capacity projects, which are to be located on Vancouver Island and which must achieve commercial operation date (COD) by May 1, 2007. This COD date provides six months to fully test and prove new generation project(s) prior to the winter 2007/08 peak demand season.

• Projects proposed must be new generation facilities; as well, tenders are also invited from independent power producers who may wish to acquire certain development assets – including the site – associated with the VIGP and who seek to build, own and operate either the VIGP, or a variation of that project, on the same site.

• The VI CFT comprises two phases : Pre-Qualification: Bidders and projects will be assessed against mandatory criteria; projects and/or bidders failing to meet the mandatory criteria will be disqualified. Tender: Bidders and projects will be re-evaluated against the pre-qualification mandatory criteria to ensure continuing compliance. A development risk assessment will be conducted by BC Hydro for each project. Projects that meet the mandatory criteria and pass the development risk assessment will be assembled into portfolios to determine the most cost-effective source of power supply.

• BC Hydro will announce the outcomes of the VI CFT by August 31, 2004. All documents and pertinent information on the VI CFT are posted  here.